Super-Sized Cycles. This company specializes in making larger bicycles for overweight riders. Thanks to Internet sales, the company has increased sales every year. However, profits have been marginal. The problem is that the company currently obtains parts from US-based companies. Though this allows for individualized customer service, it is also expensive, as each bike roughly costs $1,250 to produce. If, Super-Sized Cycles were to source materials from Taiwan, it could pay just $400 to $500 for each bike. What are the advantages and disadvantages of working with US suppliers? What are the advantages and disadvantages of collaborating with foreign suppliers? What would be the best option for ensuring the continued success of Super-Sized Cycles?

Super-Sized Cycles. This company specializes in making larger bicycles for overweight riders. Thanks to Internet sales, the company has increased sales every year. However, profits have been marginal. The problem is that the company currently obtains parts from US-based companies. Though this allows for individualized customer service, it is also expensive, as each bike roughly costs $1,250 to produce. If, Super-Sized Cycles were to source materials from Taiwan, it could pay just $400 to $500 for each bike. What are the advantages and disadvantages of working with US suppliers? What are the advantages and disadvantages of collaborating with foreign suppliers? What would be the best option for ensuring the continued success of Super-Sized Cycles?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter2: The Purchasing Process

Section: Chapter Questions

Problem 1GPE

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